Originally Posted by
maunder
Hi,
Recently, I booked UA tickets through their 1K Desk (no fees) using my Australian CBA Platinum credit card & paid in A$'s. Two days later I was shocked to see a 3% International Transaction Fee (ITF) debited. So, I am looking for a way to avoid this bank fee for future bookings.
Has anyone purchased UA tickets from UA's Australian website (
www.untiedairlines.com.au) or any non USA site? If so, and if you used an Australian (or your country's) credit card, were you charged the 3% ITF? So, it seems that if UA processes the transaction in Australia (or in your non USA country) no ITF is incurred. Is this correct?
I have USA credit cards & a USA address so I could purchase the tickets using that method. However, I need to deposit funds in US$'s into my USA credit card to cover the purchase & I will therefore incur the currency conversion fee of approx 4%. I cant win!
john
The issue is both with UA and with your choice of card provider
United Proccess the charges in AUD using a bank in the USA
I have personally raised a complaint with the ACCC over UA doing this as under my interpretation of Australian regulations they need to be using a local bank to process the payments as they have a local presence in australia
They changed the processing to use a US bank shortly after they merged with CO a few years ago.
Your specific bank CBA (Same one who issued my Diamond CC) has chosen to implement Forex fee's on charges in AUD setteled by a foreign bank. CBA did this to maintain an income stream as did a number of other Aus banks after a large number of merchants started offering to charge in AUD instead of the local currency.
Other Australian Banks do not have this charge
E.g My other account is with Teachers Mutual Bank and there is no forex fee's on any charges (local or charges in other currencies) using them
You should make a complaint to CBA over the fee (it was only implemented in october last year) and explain the situation and they will generally waive the first charge of this type that hit you. (Did for me)
There are lots of other banking options for Aus and they are well discussed on whirlpool and the CC section of this forum.
RE using the USA credit card
If the flights are EX sydney, if the billing address is set to USA instead of AUS... there can be frustrating differences in fare class availability that make the tickets artifically more expensive. it can be as high as a 40%+ difference in price and not in your favor.